When you think of the 1980s, you picture big hair, neon suits, and… Credit cards. Lots and lots of credit cards. But why did this decade become so synonymous with consumerism, and what does it have to do with your bank account or your dad’s stern lectures about “never to spend what you don’t have”?
The first consumer credit card, the BankAmericard (later Visa), appeared in 1958. It introduced the revolutionary idea of revolving credit where the bank paid upfront and you paid later. By the 1980s, credit cards were everywhere. Suddenly, buying a stereo, a car, or that neon tracksuit was not limited to the cash in your wallet. It was whatever your bank would let you borrow.
The oil crises of the 1970s had tightened belts, but the 1980s brought growth, optimism, and easy credit. Interest rates gradually fell, making borrowing tempting. People were ready to spend, and credit cards made it feel effortless.
Movies, TV shows, and ads didn’t just sell products, they sold a lifestyle. Take Bud Fox in Wall Street: a junior stockbroker trying to make it in the big world. By playing along with his mentor, Gordon Gekko, he suddenly gains a penthouse, a limo, designer suits, and a lifestyle that screams success. His story captures the 1980s tension perfectly: ambition meets opportunity, and credit, and status symbols, become the currency of achievement.
Meanwhile, somewhere in Switzerland, your dad - well, mine - born in 1942, was quietly shaking his head. “Don’t spend what you don’t have. Save for a rainy day.” For his generation, credit cards were not symbols of freedom, they were warnings in plastic form. And if you were like me, well, you did it anyway even though you were too young to have a credit card ;-)
The 1980s didn’t invent consumerism, but they perfected it. Credit cards didn’t just let people spend; they encouraged them to dream bigger than their wallets. And sometimes, to pay the price later.
Fast forward to today, and the urge to keep up has only been amplified. Social media and influencers show curated, aspirational lifestyles 24/7, while one-click payments and instant credit make it easier than ever to chase them. The tools have changed, but the impulse to show off, keep up, and sometimes overspend remains very familiar.
Do you agree?
I absolutely agree. What you buy on credit you pay for your purchases many times over if you can't pay it all off in one go. Then that credit may cost you 100's of pounds a month.
ReplyDeleteWhat a fun read! I got my first credit card in the 80s, and I can remember how new and exciting it all felt at the time. It’s interesting to look back now and see how those habits around spending have stayed with us and how it has evolved. Our love for spending has remained and it has become too easy to push that button or tap that card.
ReplyDeleteJust like in the 80s, consumerism is still very much alive today, and I agree it's even more amplified.
ReplyDeleteWho doesn't want to live like the rich? That rich lifestyles is espcially appealing if you're poor. I guess you just have to decide what is worth spending money on so it's so easy to spend and forget you have to pay later.
ReplyDeleteHave a lovely day.
Wow! The '80's. I was a young wife, and my husband and I bought our first house in 1981. The interest rate on our mortgage was 17%. Crazy to think about that now. I don't remember if we had any credit cards at the time.
ReplyDeleteCan't remember at all when I got my first credit card, just that it was a Mastercard. I never got hooked into consuming and buying on credit. I always pay off each month's bill. I was occasionally late.
ReplyDeleteI wasn't in a position to have much credit in the early 80s. My first was born in 1981, and I left work. I do think it's important to have credit, if you use it pay it off. But, it opens more doors if you have at least one card.
ReplyDeletecredit cards are a very alluring trap. been there done that. I remember a friend of mine at work listened to Dave Ramsey (sp?) on the radio. She shared info on how to get out of the mess. I followed the advice. NEVER AGAIN
ReplyDeleteYou know I think I'm still paying for some things I got in the 80's on credit!
ReplyDelete